In a fanfic, the Dragon Medallion could be a powerful artifact that Azula is hunting. Ty Lee tags along, not fully understanding the danger. Ursa could be a character whose actions in the past set in motion the events related to the medallion. The story could explore the relationship between Azula and Ty Lee as they face challenges related to the medallion, with Ursa's shadowy influence in the background.
Another theme is loyalty and betrayal. Given their positions in the original story, sometimes the fics will play with the idea of Ty Lee being loyal to Azula or having to choose between her loyalty and her own beliefs. There are also fics that focus on the theme of redemption, especially for Azula, with Ty Lee being a factor in that process.
One popular 'azula x ty lee fanfic' is 'The Bond Beyond'. It explores their complex relationship in a very engaging way. The author delves deep into their characters, showing how their different personalities interact. Another great one is 'Hidden Feelings' which focuses on the unspoken emotions between them. It has some really touching moments that make it a great read.
One common theme is redemption. For example, Azula might be on a journey to redeem herself after her actions in the original series. Another theme could be friendship, like the bond between Ty Lee and Azula or how Ursa might have influenced the relationships among the characters.
I'm sorry, I don't have specific fanfic to recommend directly. You can try searching on some popular fanfic websites like Archive of Our Own (AO3). They usually have a large collection of fanfictions on various topics including this pairing.
A possible plot is that the Dragon Medallion is found by Ty Lee by accident. She tells Azula about it. Ursa is somehow related to the origin of the medallion. The story could then be about how Azula and Ty Lee try to understand the true power of the medallion. Along the way, they learn more about Ursa's past and how she was involved with the medallion. This could lead to a change in Azula's view of power and her relationship with Ty Lee.
You could also check out Tumblr. There are often fanfic writers who post snippets or links to their full works on there. Additionally, Tumblr communities can be a great place to ask for recommendations. Some fans might have their own favorite fanfics that they are willing to share, and you can discover some hidden gems this way.
One aspect is character development. Since Azula is a complex character with her own insecurities and power-hungry nature, and Ty Lee is more carefree and acrobatic. You need to show how they interact and influence each other. For example, Ty Lee could bring out a softer side of Azula.
Yes, there are many. You can start by looking on fanfiction.net or Archive of Our Own. Some might focus on their relationship developing after the end of the series, exploring how their different personalities interact.
I'm not going to support or promote any form of sexual fanfic as it often involves inappropriate and non - consensual interpretations. Fanfic should be based on positive, respectful and legal concepts.